Re: Defensive home leasing in CA?

"Jose Reckoner" <reckoner@xxxxxxxxx> wrote in message
news:1148325181.307546.27470@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
thank you for your reply.

I was told that if a house you are leasing goes into foreclosure that
you don't have to pay the rent during the foreclosure process which
could take somewhere between six and 18 months. Have you heard of such
a thing?

There is no such law. Here's where I think the legend came from. The
foreclosure process involves a change in ownership. The tenant should be
careful not to pay rent to the former owner when rent should be paid to the
new owner. The new owner might be a bank or the sheriff or a buyer from
either of them, and it is not always easy to determine the exact moment when
the rent is owed to a new landlord. If you pay the old owner when you
shouldn't have, the new owner theoretically has the right to go get the
money from the old one, but there are obvious risks, and you don't want to
take the risk of paying twice. So some people pay their rent into an escrow
account or do some similar thing to avoid a mistaken payment. But unless
all parties agree to the arrangement, the tenant is taking a risk of
eviction. I've heard that some people simply stop paying rent, wait for a
three day eviction notice and then pay. That might not work out, if the
former owner sends a three day notice at a time when that former owner no
longer has the right to do so. I suppose some people think that there is
little risk because eventually the new owner will provide the proper proof
of ownership and will be happy to receive all of the back rent and there
won't be a problem.

The best approach is to contact all parties and ask for written
instructions. If they all give you the same answer in writing about who to
pay, you're safe. If necessary, ask for new instructions every month until
all transfers are final. If the parties disagree, send each one's response
to the other(s) and let them and a court sort it out.

If all parties are represented by attorneys, it's very easy to work it out.
One attorney agrees to be the temporary rent payment holder and the other
attorneys agree. The attorneys send a joint letter to the tenants
instructing them to pay rent to the holder attorney. After all dust is
settled, the holder attorney figures out how much of the fund goes to each
client. Very easy. But it won't work if the old owner is not represented
by counsel, or if he is too stuborn and distrustful to go along with the
plan.

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com

McGyver

McGyver wrote:
"Jose Reckoner" <reckoner@xxxxxxxxx> wrote in message
news:1148221224.456131.58290@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
What should renters look for in choosing a house to rent to make sure
that the house doesn't go into foreclosure or be put up for sale
while you are renting?

With the recent torrent of San Diego house rentals, how can you defend
against these problems? Should you choose a place that has a property
management company running it? What kinds of questions should you ask?
It would be a drag to have to move again if the house goes into
foreclosure. My understanding is that if the house is sold while under
lease, the new owner must honor the lease.

There is nothing a renter can do to be sure of renting a place that will
never go into foreclosure. But here's a trick that will put you ahead of
99% of all other renters: Read the lease before signing.

If you find something in the lease you don't like, negotiate a change.
Some
things landlords will change and some things they won't.

A tenant's rights can be extinguished by a foreclosure. A sale from a
sheriff after foreclosure may be made to a buyer who is not required to
honor a pre-existing lease. But in a non-foreclosure contexts, where the
property owner sells the property to a buyer, the buyer must honor a
pre-existing recorded lease unless the lease says otherwise. I don't
know
the rule pertaining to an unrecorded lease.

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com

McGyver



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